Hovnanian Enterprises, Inc. HOV Southeast West — Number Of Communities Impaired

We had 416 and 482 communities under development and held for future development or sale at April 30, 2026 and 2025, respectively, which we evaluated for impairment indicators (i.e., those with a projected operating loss). We performed undiscounted future cash flow analyses during the three and six months ended April 30, 2026 for six communities, with an aggregate carrying value of $32.5 million. As a result of our analyses, we identified impairment indicators in four of those communities in our Southeast and West segments, with an aggregate carrying value of $21.7 million during both the three and six months ended April 30, 2026. The impairment analyses resulted in an impairment of $5.3 million, included within "Inventory impairments and land option write-offs" in the Condensed Consolidated Statement of Operations and deducted from inventory. We identified impairment indicators in one community in our Northeast segment with an aggregate carrying value of $5.4 million during both the three and six months ended April 30, 2025. The impairment analysis resulted in an impairment of $1.2 million during the period, included within "Inventory impairments and land option write-offs" in the Condensed Consolidated Statement of Operations and deducted from inventory.